China central bank to maintain prudent, neutral monetary policy

BEIJING -- China's central bank said Saturday that it will continue to implement the prudent and neutral monetary policy and keep liquidity at a reasonable and ample level.

The People's Bank of China will maintain control over the floodgates of monetary supply and guide reasonable growth in credit and social financing, it said in a statement issued after a quarterly meeting of the monetary policy committee.

It will continue to deepen reform of the financial system and improve the "two-pillar" policy framework, which includes monetary policy and macro-prudential policy, and further improve the transmission mechanism of monetary policies, the statement said.

It will optimize financing and credit structure so that the private sector will be better served.

China maintains stable economic development with resilient growth and balanced supply and demand, the statement said.

Domestic demand is increasingly driving growth, while the exchange rate of yuan, as well as its market expectation, remains generally stable, resulting in a stronger ability for the country to counter external shocks, the statement said.